Nouakchott, Mauritania, June 2, 2023 – To help businesses in Mauritania finance the import and export of essential goods, including foodstuffs, construction materials, and vehicles, IFC today announced a trade finance facility for Banque Populaire de Mauritanie (BPM).
IFC's trade facility of up to $10 million equivalent in US dollars will help BPM scale up lending to businesses to finance imports of oil products, sugar, wheat, cement, construction equipment, vehicles, and consumer goods. The facility will also support the purchase, processing, storage, and transportation of fisheries and mining products for export.
The facility is being made through IFC's Global Trade Finance Program (GTFP) and is supported by the International Development Association (IDA) Private Sector Window (PSW), which provides co-investment funding and guarantees.
IFC will also provide advisory support to help BPM strengthen its corporate governance and risk management capacities, allowing it to better meet its clients' needs and improve its overall sustainability.
With exports representing almost 40 percent of Mauritania's GDP, trade plays a key role in the country's economy. IFC's financing will support the movement of goods to and from Mauritania, where the availability of trade finance is limited, hampering business and economic development.
"The signing of this agreement between the IFC and BPM, as the first Mauritanian bank to join the IFC's GTFP since 2014, is a great mark of confidence from this international institution in BPM. This guarantee line will offer us an opportunity to further enhance the volume of our financing offer to our importers clients and to better meet their needs." said Limam Ebnou, Chairman of the Board of Directors of the Banque Populaire de Mauritanie.
"Increasing the availability of trade finance in Mauritania will support businesses and jobs and help keep trade flowing in the country," said Josiane Kwenda, IFC's Country Manager for Mauritania. "Access to trade financing is especially important to help speed recovery from the pandemic and as businesses face new challenges arising from global economic uncertainty."
BPM is the first Mauritanian bank to join IFC's GTFP since 2014. By joining the program, BPM will gain access to a network of correspondent banks, enhancing its ability to meet the financing needs of small and medium-sized enterprises (SMEs).
IFC's investment is part of the $1 billion African Trade and Supply Chain Finance Program (ATRI), which was created to further support Africa's regional trade development.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
About Banque Populaire de Mauritanie
Banque Populaire de Mauritanie (BPM) is a financial institution created in 1998.It started with leasing and factoring activities and later developed into a universal bank. It is thus carrying out an activity, which for more than twenty years has been the sole leasing activity in the country, with a market share of more than 23% of all medium and long-term financial support to the SMEs sector. BPM offers businesses, professionals and private individuals an innovative range of products and services, in terms of deposits, savings, loans, and trade finance facilities. BPM has a network of 45 agencies covering most of the country's bigger cities.
Furthermore, BPM has offered to Mauritanians the first mobile banking solution. Bankily is today the leading banking mobile service within the country with more than 400 000 customers and 372 points of sales all around the national territory.
- www.bpm.mr
- www.bankily.mr
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